(Oct 12): Mainland Chinese company LVGEM (China) Real Estate Investment will purchase a building from Wheelock & Co. for HK$9 billion ($1.56 billion), setting a record price per square foot for a commercial building in Hong Kong’s Kwun Tong area.

A sum of HK$788 million has already been paid for the purchase, which is slated for completion by Dec 29, according to a Wheelock statement to the Hong Kong Stock Exchange on Wednesday. A HK$4.6 billion payment will be made at the time, with the balance due in instalments to Wheelock subsidiary Wharf (Holdings), the company said.

It is the second-most expensive real estate deal in Asia this year, after CapitaLand Commercial Trust, Singapore’s biggest office landlord, agreed to buy BlackRock’s Asia Square Tower 2 for $2.1 billion in September, according to Sigrid Zialcita, managing director of research for Asia Pacific at Cushman & Wakefield.

The deal by LVGEM is the latest case of mainland buyers purchasing entire buildings in Hong Kong. Known as 8 Bay East, the building enjoys a harbour-front view and is adjacent to properties bought from Wheelock by Citigroup Inc. in 2014 for HK$5.4 billion, and Manulife Financial Corp. for HK$4.5 billion in 2013.

The sale works out to be about US$1,900 ($2,576) per square foot, unprecedented for the district, according to Dorothy Chow, regional director at Jones Lang LaSalle.

“This is a good price for the seller,” said Chow, who works in valuation services in Hong Kong. “This transaction is a historical high in that area.”

Wharf shares were up 2.9% at the midday break in Hong Kong, the biggest intraday increase since Sept 5, and Wheelock shares gained 0.2%.

The article, written by Frederik Balfour​, first appeared on Bloomberg.